Christie’s Auctions Art Blocks NFTs

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Christie's announces NFT bidding to be conducted in ETH, Arbitrum opens token bridging next month, Ethereum gas fees drop as the market settles, and DAOMaker experiences a $4 million hack.

Quick Take

  • Christie’s will conduct Art Blocks NFT bidding in ETH.
  • Arbitrum will open token bridging for all tokens on October 22nd.
  • Ethereum gas fees fall as the NFT boom settles down.
  • DAOMaker suffers a $4 million hack amid questionable practices.

Christie’s Announces Bidding in ETH

Christie’s, the world’s largest auction house, has announced that bidding will be conducted in ETH for the upcoming live sale of Art Blocks Curated sets 1-3. The sale is part of the Post-War to Present auction in New York on October 1, 2021.

Christie’s is more widely known in the NFT space for auctioning the sale of “Beeple’s Everyday’s: The First 5,000 Days” NFT for a staggering $69 million. The auction house also sold a set of nine CryptoPunks NFTs for $16.9 million. However, the previous auctions have been priced out in USD, with the upcoming Art Blocks sale being the first to be priced and auctioned in ETH.

Launched in November 2020, Art Blocks is an NFT platform focused on the creation of generative art. Artists on the Art Blocks platform upload a generative script that is used to determine the characteristics of an NFT. Neither the artist nor the buyer know what the piece will look like until after the NFT is minted by the buyer.

Arbitrum Token Bridging Opens October 22nd

Arbitrum has announced that it will open up permissionless token bridging for all tokens on October 22nd. Tokens will be bridged as a basic ERC20 token unless projects create a custom ERC20 with snapshot and governance functionality.

Arbitrum emphasizes the importance for projects to decide between now and October 22nd if they will be using a standard or custom ERC-20 token. If a Standard ERC-20 is bridged and a project later chooses to create a Custom ERC-20 implementation, there would be two different L2 representations of the same token. Since each representation would be different, the two types of L2 tokens would be non-fungible, creating an inconsistent user experience.

Arbitrum will maintain a token whitelist for the next six weeks, hoping that the October 22nd deadline gives projects enough time to decide if they will need custom token functionality. Projects can always list their token on the bridge sooner by contacting Arbitrum directly. Arbitrum is an Ethereum layer2 scaling solution that uses Optimistic Rollups and fraud proofs. The layer2 solution launched to mainnet on August 31st and currently has more than $1.5 billion in TVL.

Ethereum Transaction Fees Drop As Activity Settles

Ethereum transaction fees have been dropping to levels unseen since late August as the NFT boom has settled down. The average cost of a basic transaction on Ethereum is currently about $12, according to Etherscan, compared to $59 earlier this month. The drop in transaction costs follows suit with the NFT market. The seven-day average for NFT sales has dropped from over $1 billion in late August to less than $200 million today. Daily NFT sales have also tumbled to less than $7 million.

The price of Ethereum has followed a similar trajectory. ETH spiked from $3,200 at the end of August to just under $4,000 by September 3, a price at which it hovered until September 7, when Ethereum dropped back to $3,200. The sharp drop coincides with a tumbling S&P 500 amid concerns that the US economy will not fully rebound from the pandemic. 

DAOMaker Hacked of $4 Million

Crowdfunding platform DaoMaker, not to be confused with MakerDAO, was exploited for an estimated $4 million worth of tokens from 4 projects. DaoMaker claims their portal was audited by three companies, however two of the audits are unrelated to the exploited contract. The smart contacts are also not publicly available, contrary to common practice of having verified smart contracts on Etherscan.

According to Sushi contributor Mudit Gupta, DaoMaker left the `init` function unprotected. The attacker re-initialized the contract with malicious data and then called `emergencyExit` to get away with the funds. Gupta added on to say the attacker likely used Metamask for the exploit as he called the required functions one by one rather than creating a contract to do it in a single transaction. The attacker also used 1inch exchange for a token swap. DaoMaker says it is purchasing tokens on the market to make up for the loss, but is yet to provide further clarity on the matter.